"4.8 Billion Won Fine" Harim... "Excessive Sanctions Despite Sufficient Explanation"

[Asia Economy Reporter Seungjin Lee] Harim Group on the 27th defended the Fair Trade Commission's imposition of fines for violations of the Fair Trade Act as an "excessive sanction."

Harim issued a statement saying, "Despite sufficiently proving that there was no unfair support for Olpum during the FTC's investigation and deliberation process, it is very regrettable that excessive sanctions were imposed."

The FTC on the same day imposed corrective orders and fines totaling 4.888 billion KRW on eight Harim affiliates (Farmsco, Seonjin, Jeil Feed, Harim Holdings, Farmsco Bio Inti, Forkland, Seonjin Hanmaeul, Daesung Livestock) and Olpum for violating the Fair Trade Act.

According to the FTC investigation, Kim Hong-guk, chairman of Harim, who was reviewing succession plans, gifted 100% of the shares of Olpum (then Korea Somevet Sales), which was at the top of the group's governance structure, to his son Junyoung in January 2012.

Through this, Junyoung is reported to have secured group control surpassing his father through the shareholding structure of Olpum → Korea Investment (then Korea Somevet) → Harim Holdings (then Jeil Holdings) → Harim Group.

Regarding this, Harim rebutted, "Despite sufficiently proving during the investigation and deliberation process that there was no unfair support or private benefit extraction for succession funds, these were not accepted."

They also explained, "Harim Group affiliates did not support Olpum, which is controlled by the second generation of the same person, and rather improved management efficiency and gained more profits through integrated purchasing. The transaction prices were normal prices determined through negotiations between the parties involved, and the valuation of NS Shopping (then unlisted) shares held by Olpum was a lawful valuation according to the Inheritance and Gift Tax Act. These points were clearly proven through objective data and factual evidence."

Harim plans to review the FTC's decision document upon receipt and proceed with future procedures regarding the disposition.

This content was produced with the assistance of AI translation services.